Saving money, especially in today’s economy is a popular subject. Some home buyers have found a way to save thousands of dollars on their real estate transaction.
Buyers with a computer and internet access can take a more active role in researching and viewing homes for sale, which can be a time saving process for both the home buyer and their real estate agent.
Since time is money, home buyers can take advantage of a prime opportunity to convert their efforts into cash. Access to home listings online that were once available only to agents, now gives home buyers the option to negotiate a cash rebate from their real estate agent.
Many agents that represent home buyers are open to sharing their sales commission in order to save time and effort on a transaction. Before a buyer makes an offer to buy a home, an agreement can be made with a real estate agent to represent them in exchange for a share of the agent’s commission, which is paid by the home seller at the close of the transaction.
How much money a home buyer can save depends on two issues: the split of the commission, which is negotiable with the agent; and the sales price of the home.
For Example: 3% of the sales price is a common commission rate that a home seller offers to a home buyer’s agent. If the sales price of a home is $300,000, and the buyer negotiates a 50% share of a 3% commission, that would amount to a rebate to the buyer worth $4,500.
Cash rebates can be paid to the buyer at the end of the real estate transaction, or the money can be applied to closing costs, providing there are no restrictions from the buyer’s lender, or state laws that regulate real estate transactions. There are a few states that do not allow buyers to receive cash rebates.
Commission rebates can apply to the purchase of existing homes and in some cases, new homes. Some builders offer sales commissions to independent real estate agents who bring buyers in to buy a home. Builders usually require the buyer’s agent to be with them when initially visiting the models, and when signing paperwork.
For those buyers who are willing to take a more active role in researching and viewing homes on their own, they may find a source of funds to help ease the financial burden of buying a home.
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